Political uncertainty It was a tough year to make any profits using our index-based approach to investing, as the markets continued to move downward in lockstep with political drama domestically and internationally. Our tech-heavy, simulated portfolios were no match for the widespread panic and fear that gripped the overall markets.
Dow, S&P 500 and Nasdaq sell-off It’s hard to find a fund or asset manager that have not been affected by the continued market slide which started on September 21, 2018- (a market high). As the year wore on, nothing seemed to matter, as panic continued to grip the entire market causing many investors to sell otherwise very good positions in companies whose earnings were very strong in the previous quarter with many companies earning above analyst consensus and market expectations.
Continued Volatility in 2019 Based on my experience and analysis this intense sell-off is a combination of a structural selloff- stemming from the unintended consequences of the 2018 tax law, developing economic headwinds and political uncertainty in Washington (a perfect storm of events). These events and others will continue to rumble through the financial system and cause massive losses for many. We are expecting continued volatility and heavy selling to continue, through 2019 and possibly into 2020.
Don’t try to buy on the bounce because there isn’t one. Averaging down or up may be the only medicine of the day. We prefer that investors pause and not make any new investments currently. Other strategies may include moving to more liquid investments like treasuries until there is some type of real political leadership in Washington. If you need to harvest capital losses for 2018 tax preparation, you should have no problem at all finding losses to write-off. There is plenty to go around.
Using an IRA rollover, you can transfer funds from a tax-deferred plan to an individual retirement account (IRA). If you roll funds directly to a traditional IRA, you won’t trigger current income taxes and penalties. The penalties on an early distribution from any tax-deferred retirement plan can run as high as 29% on the total […]
Retirement is one area where procrastination can be particularly dangerous to your financial future. Procrastination costs money. It doesn’t pay to put off financial plans. Start taking concrete steps towards your financial goals. If you had decided to invest $10,000 at 8 percent 10 years ago, and another person waited 10 years and then invested […]
By Rick Walter 5/21/2018 There are four basic steps that may enable you to develop a successful well-designed portfolio. These strategies can also carry over to your employer-sponsored and personal retirement plans as well. Step 1: Determine your Objectives and Time Horizon This is the amount of time that you have before you would like […]
By Rick Walter 5/15/2018 Did you know the right type of life insurance coverage may be an efficient vehicle to defend and grow your savings? Traditional wisdom indicates that you should purchase term life insurance for maximum savings, then invest the difference that you would have spent on premiums back into your IRA or 401k […]
By Rick Walter Considering savings is essential, but particularly with regards to retirement. Americans are living longer than ever before, and retirement is getting increasingly less affordable as living costs and inflation continue to grow. Several investment vehicles exist to assist you to save for your retirement like a Roth IRA. A Roth IRA is […]
By Rick Walter Facebook’s (FB) stock is being crushed by traders today as the stock takes it on the chin over the privacy data scandal that broke last week. The issue at hand is the uncertainty that surrounds the company in regards to how deep the problems are with how they collect, handle and sell […]
By Rick Walter Monday was an extremely tough trading day. Early market indicators suggested a mild trading day but it was far from it. Indices headed downward and stayed down most of the day with the DJIA closing at 24610.91 down -335.60, the S&P 500 closing at 2712.92 down -39.09, and the Nasdaq closing at 7344.24 […]
By Rick Walter Markets opened strongly this morning with the DOW at 24,932 up 176.30 points, the S&P 500 Index at 2751 up 1.83 points and the NASDAQ composite down 3.73 points at 7,492.92 around mid-day today. By the end of the day all three indices faded with the DOW ending the day slightly higher. Toy “R” Us will […]
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